KUALA LUMPUR, Aug 9 (Bernama) – Development financial institutions (DFIs) need to diversify sources of funding to be sustainable in the long run and not be dependent on fiscal support to deliver their mandates, said Bank Negara Malaysia (BNM) Governor, Datuk Nor Shamsiah Yunus.

She said their long-term financial sustainability was crucial for DFIs to effectively contribute to the nation’s development.

“Without this foundation of continued financial health and strength, DFIs will not be able to contribute meaningfully, as there will be constraints and limitations in executing their objectives,” she said in her welcome remark at the “Forum on Performance Measurement for DFIs” here, today.

Nor Shamsiah said business models for DFIs should be firmly grounded on strong governance and a culture of professional management - the foundation for all successful business model.

Meanwhile, she said BNM was also committed to cultivating a regulatory framework to support DFIs in realising their full potential, through the application of proportionality in its regulations.

“Moving forward, this application of proportionality will be further enhanced to reflect development outcomes.

“BNM is refining its methodology for DFIs to support greater differentiation at the individual institution level based on the nature, size, complexity and most importantly, the unique roles and mandates of each DFI,” she added.

Nor Shamsiah said DFIs are primed to serve the greater good and assist in the realisation of the Sustainable Development Goals (SDGs), including zero poverty, zero hunger, good health and well-being.

“It is important for DFIs to ensure they remain relevant as shifts in the global economic and social landscape continue to create risks and unforeseen externalities that may dampen growth.

“Thus, the focus on building resilience, creating building blocks to address financial instability, boosting national competitiveness, strengthening human capital, inculcating sustainable consumption and increasing productivity will be paramount in shaping our success ahead,” she added.

Starting April the banks have imposed a 50 sen processing fee on top of the 15 sen stamp duty on each cheque. The fee also applies to those applying for a Bankerâ€™s Cheque, Bank Draft and Cashierâ€™s Order. Do you think this additional charge is justified?